Nothing but net! Why fundamental indexing has outperformed market-cap since the US Presidential Election

Donald Trump’s US Presidential election victory has led to widespread re-pricing of asset prices across the globe, as evident from a rising U.S. dollar, rising bond yields and higher equity prices. Within the US equity market specifically, moreover, there has also been notable sector rotation toward better valued financial and energy stocks, and away from

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Raising the benchmark: How and why fundamentally weighted indices have been outperforming

With the rotation out of high priced defensive income stocks in the Australian equity market in recent months – and toward sectors offering relatively better value, such as resources – fundamentally weighted indexing methodologies have again demonstrated their ability to outperform traditional market-cap weighted indices over time. Dynamic value tilts through a fundamentally weighted index

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Is this Japan’s time to shine?

The weakness of the Japanese Yen in recent weeks following the Trump-led strength in the US dollar has once again thrown the spotlight on the performance potential of Japanese equities. Indeed, it may come as a surprise to some investors that, despite the relative weakness of the Japanese economy in the past decade or so,

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How Italy’s looming constitutional referendum could be “Brexit Mark 3”

No sooner have global markets digested the Brexit decision and the election of Donald Trump as US President (arguably “Brexit Mark 2”), another risk event now looms on the horizon: Italy’s constitutional referendum on December 4.  As this note explores, should voters reject the referendum (as polls indicate they might), it could lead to further

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Why short-term thinking is here to stay

In this guest contribution, Wade Matterson, Principal at Milliman Australian Financial Risk Management, discusses why the retirement industry is obsessed with the dangers of short-term thinking. Investors are encouraged to ‘stay the course’ during periods of poor investment returns or high market volatility, and to remain focused on their long-term goals – and it is

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Why did commodities rise and can it continue?

The rise and rise in the price of Australia’s major commodity exports – coal and iron ore – has been one of the astounding features of this year.  This note explores to extent to which this gain in prices was fundamentally justified, and whether these solid price gains can continue. It also re-explores valuations in

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